The end of the S-197? - Page 4 - Ford Mustang Forum
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Joined: Nov 2010
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Originally Posted by V6 Cannonballer View Post
I may not be able to legitimately blame oil companies for the way automotive manufacturing has continued (perhaps I can), but I can certainly blame them for greed. Making billions in profit every single year but blaming the cost of gasoline on the increased price of a barrel of oil is ridiculous. I could understand if their profits actually plummeted into the low millions, to the point that their bottom-line could be threatened over night, but not with the money they're raking in. Something seriously wrong in the equilibrium between their law of supply and demand. No reason on earth that gas in the U.S. can't still cost a dollar a gallon. No reason at all.
No reason except the fact that a barrel of oil is 42 gallons and is presently selling for about $100 per barrel. That's $2.50 for just the raw material.

Oil companies only make about 7% profit, which is not a whole lot. However, they are an easy target to blame. Better that than blame the stupid summer/winter/regional blend, ethanol, tax, and supply reasons that government has complete control over.

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